ebridge Financial(CRBG) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenues for Q1 2025 were $3,590 million, a decrease of 38.4% compared to $5,836 million in Q1 2024[14] - Net income attributable to Corebridge for Q1 2025 was a loss of $664 million, compared to a profit of $878 million in Q1 2024[14] - Premiums collected in Q1 2025 were $889 million, down from $2,295 million in Q1 2024, reflecting a decline of 61.2%[14] - Total net investment income for Q1 2025 was $3,189 million, an increase of 9.1% from $2,924 million in Q1 2024[14] - Policyholder benefits for Q1 2025 amounted to $1,457 million, a decrease of 48.0% from $2,807 million in Q1 2024[14] - The company reported net realized losses of $1,414 million in Q1 2025, compared to $320 million in Q1 2024[14] - Comprehensive income attributable to Corebridge was $968 million in Q1 2025, up from $235 million in Q1 2024, indicating a strong recovery in other comprehensive income[15] - Corebridge Financial reported a net loss of $657 million for Q1 2025, compared to a net income of $827 million in Q1 2024, representing a significant decline[15] - Adjusted pre-tax operating income for the three months ended March 31, 2025, was $810 million, compared to $837 million for the same period in 2024[37] Cash Flow and Investments - Cash flows from operating activities provided $375 million in Q1 2025, down from $598 million in Q1 2024, reflecting challenges in generating cash from operations[17] - The company experienced a total adjustment of $1,032 million in Q1 2025, contrasting with a negative adjustment of $229 million in Q1 2024, highlighting improved operational cash flow[17] - Corebridge's net cash used in investing activities was $3,873 million in Q1 2025, compared to $2,645 million in Q1 2024, reflecting increased investment activity[17] - The company reported policyholder contract deposits of $9,145 million in Q1 2025, an increase from $8,504 million in Q1 2024, indicating growth in customer investments[17] - The total cash and restricted cash at the end of Q1 2025 was $399 million, a decrease from $426 million at the end of Q1 2024[18] Shareholder Information - The company repurchased $321 million of common stock in Q1 2025, compared to $243 million in Q1 2024, demonstrating a commitment to returning value to shareholders[17] - As of March 31, 2025, AIG Parent owned approximately 23.0% of Corebridge's outstanding common stock, while Nippon Life Insurance Company owned about 22.0% following a significant transaction[21][22] Asset and Liability Management - As of March 31, 2025, total assets measured at fair value amounted to $275.266 billion, with $88.146 billion in Level 1 assets, $158.796 billion in Level 2 assets, and $34.720 billion in Level 3 assets[41] - The total bonds available-for-sale reached $174.352 billion, with corporate debt contributing $109.115 billion, representing 62.5% of the total bonds available-for-sale[41] - Total liabilities measured at fair value were $18.769 billion, with derivative liabilities comprising $106 million and market risk benefit liabilities at $6.339 billion[41] - The company reported $6.3 billion in investments measured at fair value using net asset value (NAV) as of March 31, 2025, compared to $6.1 billion as of December 31, 2024[43] Market Risk and Valuation - The change in the fair value of market risk benefits for Q1 2025 was a gain of $385 million, compared to a loss of $369 million in Q1 2024[14] - The company emphasizes the unpredictability of insurance liability claims and market conditions affecting future performance[6] - The company recorded a change in the fair value of market risk benefits resulting in a net loss of $577 million for the three months ended March 31, 2025[50] Segment Performance - The company operates through five reportable segments: Individual Retirement, Group Retirement, Life Insurance, Institutional Markets, and Corporate and Other[29][30] - The company plans to continue restructuring initiatives aimed at reducing operating expenses and improving efficiency, with costs primarily related to severance and modernization efforts[38]